Murray Goulburn skims 200mn litres off 2017/18 production forecast
Australian dairy-producing giant Murray Goulburn (MG) has downgraded its production output for this season by 200mn litres.
With suppliers switching to other milk processors, it is shaping up to be a difficult year for MG, as production levels continue to slump.
The company expects to produce 2.5bn litres in the 2017/18 season, a billion less than what it churned out in 2015/16 which equates to a decline of more than a third. MG’s record year, 2014/15, saw it produce 3.6bn litres.
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Along with revised production figures, MG also revealed the sale of local brand Kiewa Country, which sources and produces milk products from its facility in Tangambalanga in north-eastern Victoria.
Despite the fall in output, MG is saying that its opening price of $5.20 per kilogram of milk solids has not been affected, citing cost efficiencies and improvements in the way business is conducted as mitigating factors.
MG’s final price range is also unaffected, with the company maintaining its selling position of $5.20-$5.50. However, the strength of the Australian dollar could force an upwards movement, especially if it continues to perform well against the US dollar.
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